After Netflix, Disney Hotstar ends password sharing system in India

Walt Disney's Indian streaming service, Disney+ Hotstar, is set to implement a new policy aimed at curbing password sharing among its premium users. Currently, a premium account on the platform allows logins on up to 10 devices, although the website mentions a limit of four devices. However, this discrepancy is about to change, as the company plans to enforce the four-device login policy later this year, according to Reuters sources.

The move comes as streaming giant Netflix took similar action in May by informing subscribers in over 100 countries that sharing the service with individuals outside their household would require an additional fee. Disney hopes to discourage password sharing among its users and incentivise them to purchase their own subscriptions with the introduction of the new restrictions.

India has emerged as a crucial market for streaming services, with players like Disney, Netflix, Amazon, and JioCinema experiencing massive popularity. Media Partners Asia estimates that the Indian streaming sector could grow into a $7 billion market by 2027. Currently, Disney+ Hotstar holds a dominant position in the market, with approximately 50 million users, making it the market leader in terms of viewership share. During the period between January 2022 and March 2023, Disney's Hotstar accounted for 38 per cent of the streaming market in India, while rivals Netflix and Prime Video had 5 per cent each, as per data from research firm Media Partners Asia.

The decision to enforce the four-device login policy was initially put on hold to attract subscribers through password sharing, hoping that these users would eventually convert into paying customers. However, with the rising importance of the Indian market and the need to maintain revenue growth, Disney is now taking a more proactive stance in curbing password sharing.It should be noted that only a small percentage, around 5 per cent, of premium subscribers on Disney+ Hotstar currently exceed the four-device login limit. Nevertheless, the company believes that by implementing the policy, it will further encourage genuine users to buy their own accounts, leading to sustained growth and reduced misuse of the service.